The Dallas Fed regularly surveys executives in the oil and gas industry. Here are a bunch of direct quotes from the responses they got to their most recent survey. Seems like "Energy Dominance" hasn't quite been going according to plan for the oil and gas industry.
-"We have begun the twilight of shale."
-"The U.S. isn't running out of oil, but she sure is running out of $60 per barrel oil. $100 per barrel? $150 per barrel? Price likely must cover for less-than-optimal geology over time. One must wonder—in a country with over a million orphan wells—what happens to that (expensive) plug and abandon liability from the 200,000+ horizontal shale wells over time. We already see some companies that appear to have a business plan of a "bad bank." Society will not treat us kindly unless we do our part to clean up after we are gone."
-"It’s going to be a bleak 3-plus years for the oilpatch. Why would Wall Street want to invest in the worst performing sector of the S&P when artificial intelligence beckons?"
-"Given the U.S. Energy Information Administration's forecast for 2026 oil prices averaging $47 per barrel, we are suspending drilling indefinitely after we drill our last well starting this month."
-"The "drill, baby, drill" return isn't going to happen! "
-"We are finding it difficult to hedge production at this level. Our belief is crude at $60 per barrel is below replacement cost and will not continue unabated for an extended time. "
-"The administration is pushing for $40 per barrel crude oil, and with tariffs on foreign tubular goods, [input] prices are up, and drilling is going to disappear. The oil industry is once again going to lose valuable employees."
-"The noise and chaos is deafening! Who wants to make a business decision in this unstable environment?"
-"The uncertainty from the administration’s policies has put a damper on all investment in the oilpatch. Those who can are running for the exits."
-"Costs have been relatively flat and we're not seeing the efficiency gains that are being reported elsewhere in the Permian. With all of that, our expectation is to manage our lease expirations but not drill unnecessary wells in this price environment."
-"Tariffs continue to increase the cost of production. We are suffering from a combination of increased cost due to tariffs and downward pricing pressure from end users. Global geopolitical issues and U.S. foreign policy uncertainty are creating increased financial challenges for both our U.S. and international business."
-"Our manufacturer suppliers have failed to maintain quality assurance standards in their efforts to reshore certain heavy material and pipeline fabrication, which has negatively impacted our ability to meet project timelines effectively."
Feel free to read more here:
https://www.dallasfed.org/research/surveys/des/2025/2503#tab-questions
Source: FledglingNonCon